Spanish soccer giants Real Madrid have secured their first-ever sleeve sponsorship deal, with computer hardware firm HP.
The LaLiga club teased the partnership on their social media account yesterday (February 1) and confirmed the news today.
🗓️ 02/02/2024 🗓️ pic.twitter.com/LJO0JxAG3X
— Real Madrid C.F. (@realmadrid) February 1, 2024
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The sponsorship covers the men’s and women’s teams as well as youth programs and will see the men's team don two sponsors on its shirt for the first time in its 121-year history, with HP joining that of front-of-shirt sponsor Emirates, the Dubai-based airline.
The new shirts featuring HP's logo will debut during Real Madrid's match against rivals Atlético Madrid on Sunday (February 4).
In addition, HP will become the club’s newest technology partner, with the company providing its services, including AI-enabled devices, at the newly renovated Santiago Bernabeu stadium, including in-person experiences, gaming, and club operations.
According to Spanish news outlets, the deal is worth as much as €70 million ($75.7 million) per season and will see the HP logo feature on one of the sleeves of the team’s shirt.
In total, Real Madrid’s shirt sponsorship deals are worth more than $270 million, with the majority coming from kit manufacturer adidas, which has a €117.6 million per year deal in place until 2028. The club’s Emirates deal, meanwhile, is worth €70 million per season until 2026.
Those deals have provided the club with a much-needed revenue boost, which saw them bring in a record €843 million in the 2022-23 season – a 16% increase from the previous campaign, which saw revenues of €121 million.
The club has previously voiced their desire to hit €1 billion in revenue for the 2024-25 season on the back of 2022-23 results by adding to their existing sponsorship portfolio.
Another factor that will increase the club’s income will be the completion of the iconic stadium by the end of this year, which will increase stadium and matchday revenue “in 2023-24 significantly compared to the 2022-23 financial year.”
The Bernabeu is currently being redeveloped in a project that is costing between €800 million and €900 million, with the club securing a stadium investment partnership with US investment firm Sixth Street and with the Legends agency it owns.
Income from that sector in 2024-25 is expected to increase further still, although the club has said that this rise will “also translate into the consequent increase in operating expenses related to the operation of the stadium.”
Real are hoping to recoup the huge outlay spent on renovating their home by staging regular events at the Bernabeu outside of soccer matches with plans for the venue to be open for use 300 days a year.
Events include mega pop star Taylor Swift, who will perform two concerts at the stadium as part of her Eras Tour on May 30 and 31.
There will also be a skywalk around the stadium, with some of Spain's biggest restauranteurs invited to make proposals for those spaces, while new VIP zones will also have over 25,000 square meters to create premium hospitality spaces.
The stadium will feature a retractable roof to stage indoor events, as well as retractable turf which means the playing surface for the club’s matches will not be affected.
The redevelopment will, in addition, expand the stadium’s capacity to around 100,000 for music concerts and other events with standing areas.